tag:blogger.com,1999:blog-85191539400451769072011-11-28T06:11:26.815+05:30There are three big interviews related to a MBA (Selection, Summers, and Final placement). Interviewees typically have 'standard' answers for most of the interview questions. However, having a different point of view for a key question can set the interviewee apart from the rest of the pack and also single handedly turn the case in favor of the interviewee. This blog is an attempt to highlight a different point of view on key topics of relevance.Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.comBlogger221100tag:blogger.com,1999:blog-8519153940045176907.post-34410580877385304262010-01-30T21:25:00.002+05:302010-01-30T21:30:48.632+05:30

As a follow up to the earlier post Is the US government really doing the right thing? there are signs now that the actions of the government are leading upto an impending recession.The basic reason is that the economy, which was pretty sick due to the excessive debt, was never let to recover fully. Instead it was put on steroids - which will lead to robust growth in the next couple of years.

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-88604697797045153592009-06-14T22:37:00.003+05:302009-06-14T22:41:36.633+05:30

What a difference a month can make! Economists, that till a month ago were forecasting gloom and doom, are now predicting that the recession is over. The stock markets have zoomed ahead and there is a sense everywhere that the worst is behind us. Is it really so?For economies to grow, people have to spend. When customers spend more, factories produce more goods and services, and hire more people

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com3tag:blogger.com,1999:blog-8519153940045176907.post-66333543255250625652009-04-28T21:55:00.002+05:302009-04-28T22:00:28.488+05:30

What is carry trade? Carry trade essentially means borrowing at a place where the borrowing costs are low and investing in another place where the rate of return is high. Carry trade became very popular in the last decade, when Japanese interest rates were close to zero. It came to be known as the Yen carry trade.Let us look at how investors benefited from the near-zero interest rate in Japan and

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com1tag:blogger.com,1999:blog-8519153940045176907.post-50597822114846371372009-04-07T21:24:00.002+05:302009-04-07T21:28:24.313+05:30

After the US government warned General Motors (GM) and Chrysler to shape up or go bankrupt, there has been a huge uproar from many people. The argument goes that if the US government is ready to spend hundreds of billions of dollars to save the banks, then why not spend a few billion dollars to save the auto companies? Although the argument may sound convincing, there are some key reasons as to

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-18936991211130780162009-04-05T00:02:00.001+05:302009-04-05T00:16:10.984+05:30

The boom and bust in the housing market has been the trigger for throwing the world economy in recession. Many pundits believe that for the economy to recover, the housing market should first stabilize. Of late, there are signs that the housing market might be seeing a turnaround. It there a cause for celebration?In the UK, the Nationwide Building Society reported the first monthly rise in house

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-75708372723601428822009-03-24T14:08:00.002+05:302009-03-24T14:13:59.852+05:30

Stock markets the world over surged after the US Treasury announced its latest plan. The Dow jumped almost 500 points, its biggest one-day point gain since November 21. What makes this plan so different, and why are the markets so happy?One of the key learning from the Japanese lost decade was that 'Zombie Banks' prolonged the crisis. Towards the end of the last century, the Japanese real-estate

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com3tag:blogger.com,1999:blog-8519153940045176907.post-72459989262748399992009-03-14T20:04:00.004+05:302009-04-05T00:25:54.301+05:30

***Continuation of the previous post: The Indian Rupee (Part I: The Rise) ***The very same factors, that led to the rise of the Rupee, reversed rapidly in 2008. This led to a huge fall in the Rupee. However, there are a couple of more factors which accelerated this cycle:Vicious cycle of stock market returns and currency depreciation: The returns for global financial institutions investing in

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-11137725879027594742009-03-14T19:56:00.003+05:302009-03-17T16:52:45.253+05:30

The past few years have seen a monumental see-saw in the value of the Rupee. After hovering in the 44-46Rs./$ range for a long time, the Rupee gained in value and rose more than 15% in 2006-07. Then during 2008-09 it fell from around 39Rs./$ to nearly 52Rs./$ (a fall of more than 30%)!! What led to such wild swings in the value of the Rupee, and what does the future hold?At the heart of the

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-47972160676032752312009-03-13T00:42:00.003+05:302009-03-17T16:53:03.063+05:30

As the subprime crisis deepens in the US, more and more people are finding it difficult to make payments for their home loans (mortgages). As a result, banks are re-possessing their houses to sell them off and recover the loan amount. As many people are being forced out of their houses (foreclosure), there is increasing pressure on the US government to help these people. However, there are some

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com1tag:blogger.com,1999:blog-8519153940045176907.post-65021037793829647092009-03-08T13:23:00.004+05:302009-03-17T16:53:24.132+05:30

The global financial crisis is having strange implications across the globe. Courtesy of the crisis, VolksWagen (a car manufacturer) suddenly found itself as the most valuable company on the planet! VolksWagen (VW) is normally less than third the size of market cap leaders like ExxonMobil . However, a string of strange events shaped up to make it the most valuable company for a short time.Since

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-38746501397707675202009-02-15T11:16:00.005+05:302009-03-17T16:51:04.639+05:30

With governments all around the world announcing bailout packages totaling trillions of dollars, the questions remains - why is the global economy not recovering? The answer lies in understanding the concept of ‘velocity of money’.Let us take a simple case in which there are only two people in a given country - Mr. A, who sells clothes and Mr. B, who sells food. Suppose Mr. A has $100 and buys

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com1tag:blogger.com,1999:blog-8519153940045176907.post-34571170569469303942009-02-14T11:36:00.002+05:302009-03-17T16:52:04.270+05:30

We have all been taught the virtues of saving money. Indian children are routinely reminded by their parents about spending less and saving more and schools teach stories extolling the virtues of thrift. In times of global economic crisis, most Indians, willingly or unwillingly, have started doing this. However, the impact of this on the Indian economy could be devastating indeed.The basic reason

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com1tag:blogger.com,1999:blog-8519153940045176907.post-11795315184741664192009-01-23T14:27:00.009+05:302009-03-17T16:51:48.628+05:30

Ever since the markets fell a few months ago, experts have been advising people that it is a good time to buy stocks with a long term horizon. But should we really buy stocks, and what exactly is ‘long term horizon’?The current economic downturn is the worst since the great depression. The current market crash has been pretty similar to the ‘Great Crash of 1929’ which led to the great depression.

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com3tag:blogger.com,1999:blog-8519153940045176907.post-22338854782544540222009-01-18T15:42:00.009+05:302009-01-18T16:22:28.721+05:30

With the global economic crisis worsening, there have been mails / posts about how Indians can help their country by buying Indian goods. The argument is that if Indians buy only Indian goods and boycott foreign goods and brands, India will be able to save a lot of foreign exchange. But will reducing the consumption of foreign goods actually help India? Let us see what history tells us...In the

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com2tag:blogger.com,1999:blog-8519153940045176907.post-22461093009236470782009-01-13T00:44:00.008+05:302009-01-16T12:17:33.266+05:30

Even though the International Monetary Fund (IMF) is predicting a global recession in 2009, India’s growth rate is expected to be at 7% . In a world where most economies will shrink or grow marginally, 7% is a stunning growth rate. However, is this a realistic prediction? There are a host of factors that could derail India’s growth in 2009. Consumers: The biggest risk to India’s growth comes

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com1tag:blogger.com,1999:blog-8519153940045176907.post-12364970387816003402009-01-10T17:58:00.007+05:302009-01-16T12:17:49.624+05:30

For all of us who fill in our vehicles at the petrol pumps, the recent drop in oil prices is a welcome relief. However, looking at the macro picture, the recent drop in global oil prices (from the highs of around $150 per barrel last year to the current price of $40) may turn out to be a bad thing. Lets see how...The soaring price of oil in the initial part of 2008, had lead to a spike in the

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com2tag:blogger.com,1999:blog-8519153940045176907.post-26906823800859260312009-01-08T18:37:00.005+05:302009-01-16T12:18:02.350+05:30

The US government has been praised for the way it has reacted to the current financial crisis. The US government has acted quickly on both monetary (reducing interest rates) and fiscal (providing stimulus packages and tax rebates) fronts. However the basic question remains, is the US government really doing the right thing?Consider the analogy of a person who falls ill. The doctor can give

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-69879196727881845232009-01-08T18:36:00.005+05:302009-01-16T12:17:22.080+05:30

A lot has been said and written about the Indian businesses - how they were growing at a scorching pace, how they were making global acquisitions, etc. However, for all the hype surrounding the Indian businesses, the fact still remains that they had a plethora of factors going for them until some time ago:- Huge liquidity in the global financial system- Increasing Foreign Direct Investment (FDI)

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-18262397742473006902009-01-08T18:32:00.004+05:302009-01-16T12:17:08.795+05:30

Indian people are all too familiar with rising prices. Over the past few years, inflation had been steadily climbing upwards making almost everything expensive. It’s a relief to see inflation begin to cool off recently. But that raises a question - is deflation a possibility for India?Deflation is the opposite of inflation. During inflation prices go up. During deflation prices come down.

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com3tag:blogger.com,1999:blog-8519153940045176907.post-72420067194265768992009-01-07T18:17:00.005+05:302009-01-16T12:16:56.883+05:30

Not a day passes by when we do not read or hear about the failures of capitalism in the US and how it led to the subprime crisis (which in turn went on to become a global financial crisis). But is capitalism really to be blamed? Or was it poor political intervention that led to all this? Lets see:Historically it was observed in the US that low-income people and minorities were not granted

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com4tag:blogger.com,1999:blog-8519153940045176907.post-22216270996913200742009-01-07T18:15:00.004+05:302009-01-16T12:16:44.220+05:30

Talk of regulation in India, and people generally think of red-tape and outdated rules. However, in recent times there has been an instance of exemplary regulation in India that should serve as a good example for the other countries of the world to emulate.The regulator for the Indian banking system is the Reserve Bank of India ( RBI ). Dr. Y. V. Reddy was the governor of RBI from 2003 to 2008.

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com0tag:blogger.com,1999:blog-8519153940045176907.post-27972500000483203672009-01-07T18:13:00.010+05:302009-03-17T16:50:41.814+05:30

There is a lot of talk about how the US economy is in a bad shape. Many big corporations have been bailed out by the government or have got government funding. The US investment banking business has been badly hit and now the big-3 carmakers are facing the heat. The economy is in a recession and unemployment is rising. The trade deficit is ballooning. Some people are even predicting the end of US

Vaibhavhttp://www.blogger.com/profile/11113482570581205507noreply@blogger.com2